11 Oct 2013
EUR/CHF capped by 61.8% Fibonacci area as of 1.2338
FXstreet.com (Athens) – The EUR/CHF is constantly trading above 1.2300 handle – though today is trading slightly lower – amidst a “technical battle” where 50-daily MA is very close to the 200-daily MA.
EUR/CHF on a crossroads; will it manage to overcome the barrier as of 1.2338?
The EUR/CHF has been trading mostly sidelines since the kick off of the Asian trading session, though it is heading slightly south on Friday. However after a series of three consecutive daily positive closures, market participants should not be taken aback by the slight downtrend corrective rebound. Nevertheless, investors should mostly take upon consideration the technical issues pertaining to the cross, as the 50-daily MA is standing at 1.2317, while the 200-daily MA lies very close at 1.2314. Obviously, we could say that as far as we are concerned – other factors equal – the potential overcrossing of the two significant daily MA’s would lead to a major break-out. Still, we have witnessed that the cross is unable to overcome the 61.8% Fibonacci barrier as of 1.2338 (of the downtrend retracement movement as of 1.2215 – 1.2415.) All in all, taken for granted that even at the 12th hour and even for a short-term of period there will be a resolution on the US fiscal impasse, traders should mostly keep their eyes on the technical aspects of the cross. Earlier, according to news wires the Greek 10-year bond yields were standing near 4.5-month lows at 8.79%, showing that the country’s getting out of the woods.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF continues to rebound off the 1.2217 June low. Rallies has breached the 1.2315 200 day ma and the 55 day ma at 1.2323.Above here has alleviated immediate downside pressure and targets the downtrend at1.2388.Dips should find support at the1.2266 August low ahead of the 1.2217 June low.”
EUR/CHF on a crossroads; will it manage to overcome the barrier as of 1.2338?
The EUR/CHF has been trading mostly sidelines since the kick off of the Asian trading session, though it is heading slightly south on Friday. However after a series of three consecutive daily positive closures, market participants should not be taken aback by the slight downtrend corrective rebound. Nevertheless, investors should mostly take upon consideration the technical issues pertaining to the cross, as the 50-daily MA is standing at 1.2317, while the 200-daily MA lies very close at 1.2314. Obviously, we could say that as far as we are concerned – other factors equal – the potential overcrossing of the two significant daily MA’s would lead to a major break-out. Still, we have witnessed that the cross is unable to overcome the 61.8% Fibonacci barrier as of 1.2338 (of the downtrend retracement movement as of 1.2215 – 1.2415.) All in all, taken for granted that even at the 12th hour and even for a short-term of period there will be a resolution on the US fiscal impasse, traders should mostly keep their eyes on the technical aspects of the cross. Earlier, according to news wires the Greek 10-year bond yields were standing near 4.5-month lows at 8.79%, showing that the country’s getting out of the woods.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF continues to rebound off the 1.2217 June low. Rallies has breached the 1.2315 200 day ma and the 55 day ma at 1.2323.Above here has alleviated immediate downside pressure and targets the downtrend at1.2388.Dips should find support at the1.2266 August low ahead of the 1.2217 June low.”